Under IAS No. 39, transfers of debt investments out of the FVTPL category into AFS or HTM are permitted under "rare circumstances."

Question

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According to IAS No. 39, transfers of debt investments out of the FVTPL category into AFS or HTM are permitted under "rare circumstances." However, such transfers are only allowed if the entity has a clear intention and ability to hold the investment to maturity or until it is sold.